By Joshua Kirby
Economic activity improved in the eurozone at the start of the year, falling at its slowest rate in half a year, according to a purchasing managers’ survey published Wednesday.
The HCOB Flash Eurozone Composite PMI Output Index–a gauge of activity in the manufacturing and services sectors–rose to 47.9 in January from 47.6 in December. The reading was just a little below the level of 48.0 expected by economists, according to a poll carried out by The Wall Street Journal.
The manufacturing index notably improved on month, with output falling at its slowest rate since April last year and new orders also falling less slowly. Input costs continued to fall despite supply-chain disruption from Houthi attacks on shipping in the Red Sea.
“Various industry reports indicate that businesses are not caught off guard like they have been previously, having learned from past disruptions,” said HCOB chief economist Cyrus de la Rubia.
“The commencement of the year brings positive tidings for the Eurozone as manufacturing experiences a widespread easing of the downward trajectory witnessed in the past,” he said.
Services meanwhile declined at its fastest rate since October, but new business pointed to an improvement in demand ahead.
The wider bloc performed better this month than its largest economies, France and Germany, both of which posted a decline in their index. The rest of the eurozone conversely returned to growth after five months of decline.
Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby
